Newton Corp is considering a new project that will earn $450,000 of total income over...

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Accounting

Newton Corp is considering a new project that will earn $450,000 of total income over the next
five years. The cost to start the project totals $500,000, and it will have a $22,000 salvage
value. Compute the average rate of return for the project, rounding to the nearest whole
percentage. What is the average investment worth?
a. $261,000
b. $50,000
c. $472,000
d. $522,000
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